Dana Holding has posted 2008 full year net income of $18m – versus a net loss of $551m in 2007 – on sales of $8.01bn, down $626m year on year but will axe more jobs this year than previously expected.
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The sales decrease was due mainly to “sharply declining vehicle production levels in North America”, the supplier said in a statement, noting that the result included a one-off gain of $754m related to its emergence from chapter 11 bankruptcy reorganisation.
Dana executives later told analysts the firm would axe around 5,800 jobs worldwide this year, up from the 5,000 announced earlier. That would mean it had trimmed its workforce by about 35% compared with 2007.
Full-year earnings before interest, taxes, depreciation, amortisation, and restructuring (EBITDA) were down to $301m last year compared with $450m in 2007.
“The decline was due to significantly lower vehicle production, which was partially offset by margin improvements and cost reductions,” according to the parts supplier.
Dana did not provide net profit/loss data for the fourth quarter of 2008 but said EBITDA was a $3m loss, compared to a $112m profit a year previously. Sales fell 29% to $1.5bn as North American vehicle production fell sharply and currency movements hit adversely.
“The impact of lower vehicle production drove the reduction in earnings. This decline was partially offset by higher pricing and cost savings from operational improvements,” Dana said.
Chairman and CEO John Devine said: “We expect 2009 to be even more challenging than 2008, but we believe [we are] prepared with plans to continue re-sizing our operations, improve operational performance and margins, and maintain adequate liquidity and earnings.
“These are unprecedented times that make any projections uncertain. We believe we are taking the difficult actions necessary to survive in the current environment and compete over the long term. There can be no assurances, however, if the global economy deteriorates substantially beyond our planning assumptions.”
